Asian Stocks Decline as Signs of China Slowdown Mount

May 10 (Bloomberg) -- Asian stocks dropped this week, with
Japan’s Topix index falling the most in a month during trading
shortened due to holidays, as a private survey showed Chinese
manufacturing contracted a fourth month.

The MSCI Asia Pacific Index retreated 0.4 percent to end
the week at 137.91. Japan and Hong Kong, the world’s second- and
third-largest equity markets, posted the biggest declines this
year among 24 developed markets tracked by Bloomberg.

“We’ve seen an ongoing trend of mixed economic data, with
China still looking pretty challenging in terms of the loss of
momentum there,” said Mark Lister, Wellington-based head of
private wealth research at Craigs Investment Partners Ltd.,
which has about $7.4 billion under management. “We’ve become a
little more cautious over the past few weeks.”

Japan’s Topix index fell 1.4 percent this week, extending
this year’s slump to 11 percent, as investors weighed whether
Prime Minister Shinzo Abe and the Bank of Japan can foster a
sustained economic recovery. Trading this week was shortened two
days by the Golden Week holidays.

Australia’s S&P/ASX 200 Index added less than 0.1 percent.
The central bank held its benchmark interest rate at a record-low 2.5 percent, as forecast by all 33 economists surveyed by
Bloomberg. New Zealand’s NZX 50 Index dropped 1.5 percent, its
largest such decline this year.

Tech Rout

The Bloomberg Asia Pacific Internet Index fell 4.2 percent
this week to a five-month low. Technology shares slumped around
the world this week, with Twitter Inc. dropping 18 percent amid
concern that user growth is slowing and valuations have become
excessive.

Great Wall tumbled 23 percent to HK$27.25 in Hong Kong. The
company, led by billionaire Chairman Wei Jianjun, said yesterday
it suspended H8 sales after reports of “knocking noises” when
the SUV was driven at high speeds. Great Wall will hold off
until it is able to ensure the vehicle is of a “premium
standard,” it said, without specifying a date.

Casino shares slumped in Hong Kong. Macau police made
arrests tied to the use of a card-swiping device from China
UnionPay Co. amid concern illict funds are being funneled from
the mainland to casinos. The crackdown is aimed at stopping
gamblers from illegally using the devices in casino resorts to
get cash for chips without buying anything, police said in an e-mailed statement.

MGM, Galaxy

MGM China Holdings Ltd. slid 6 percent on the week to
HK$25.65. Galaxy Entertainment Group Ltd. dropped 6.7 percent to
HK$58.50. After rallying an average 217 percent in the last two
years, shares of the six biggest casino operators had tumbled 20
percent in 2014 through May 8.

The MSCI Asia Pacific Index traded yesterday at 12.6 times
estimated earnings compared with 15.9 for the Standard & Poor’s
500 Index, according to data compiled by Bloomberg. Among
companies on the Asian gauge that reported results since April 1
and for which Bloomberg had estimates, 51 percent beat
projections for profit.

Envestra Bid

Envestra surged 16 percent to A$1.335. A group including
Cheung Kong Infrastructure Holdings Ltd., the second-largest
stakeholder in Envestra, offered A$1.32 a share. That compares
with the APA Group stock offer worth A$1.31 a share. APA is the
biggest holder of Envestra shares with 33 percent, according to
data compiled by Bloomberg. Envestra has 23,000 kilometers
(14,000 miles) of pipelines that supply gas to customers, mostly
in the Victoria and South Australia states.